Credit Card Consolidation FAQ

For individuals who carry a balance on several credit cards, debt consolidation, with the necessity to make only one monthly payment, offers an attractive opportunity. Using this approach, debtors can lower interest rates or the overall size of required minimum payments. Number Jim Tehan, spokesman for money management website Myvesta Foundation, recommends that most people should carry no more than two credit cards while trying to control debt. The more cards people carry, the more opportunities they have to get deeper into credit card...

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How to Get a Second Job to Pay Debt

Being in debt is never an enjoyable experience and it can have a negative impact on your emotional well-being. Even if you have a high-paying, full-time job, you may not be making enough money to pay your current bills while attempting to pay off your existing debt. Picking up a second job can increase your income and help you get out of debt faster. While working two jobs is extremely time-consuming, it is often one of the easiest and fastest ways to get yourself out of debt and your life back on track. Instructions 1 Talk to your current...

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How to Calculate a Payoff Date After Additional Principal Payments

After you have made additional principal payments, you can calculate the amount needed to payoff the account if you have all of the terms. The payoff will be lower after additional principal payments have been made, because the balance will be less. The smaller the balance, the less interest or finance charges that accrue daily. You can calculate the payoff using the same technique for a mortgage loan, auto loan or even credit cards. Instructions...

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Debt and the Effects of Stress

If you're carrying too much debt for your comfort, you may find yourself worrying about your ability to repay it. If you're being harassed by bill collectors or even facing the possibility of bankruptcy or foreclosure, you may be dealing with an extreme amount of stress. Debt stress can affect your life in several ways. Physical Health Problems Worrying about debt could lead to problems with your physical health. According to MSNBC.com, a...

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How to Clear Your Credit Report of Judgments

A poor credit score will negatively affect your life. It will affect the loans you are offered in the future, the type of apartment you can rent and it can even impede your ability to secure employment. One of the factors that will negatively affect your credit score is the presence of judgments. Judgments, or court-ordered liens against you, can be removed from a credit report. Instructions 1 Pull an updated copy of your credit report. Visit...

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What Is Differential Claim Insurance?

A claim is the basic action taken by an insurance policy holder who wants to claim insurance benefits for health treatment, lost employment or any other type of expense covered by the insurance policy. When these claims must be adjusted based on an individual's earnings, or when a claim runs afoul of policy rules, claim differentials must be worked out. Differential claims on insurance are most often used for wage decreases due to disability and treatment from non-covered physicians. Wage Differential Claims A wage differential claim is...

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What Income Is Exempt in Texas From Unsecured Debt?

If you fell behind on your payments of unsecured debt, such as credit cards, and your creditor has sued you and won, you now have a judgment against you, which gives your creditor more avenues to collect the debt you owe. In many states, creditors can freeze your bank accounts, seize your property and garnish your wages. In Texas, creditors have fewer options available to them for collection, and some income is exempted by federal law. Judgment Process In Texas, as in all other states, a creditor must first sue you in court to prove that...

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What Wages May Be Garnished?

When you get into debt, one of the potential consequences of not making payments on the debt is wage garnishment. This is a process by which a creditor takes part of your paycheck every time you get paid. In regard to wage garnishment, the creditor can only take money from specific sources. Wage Garnishment Basics When you owe a creditor a debt and do not pay off the balance, the creditor may file a lawsuit against you. After the lawsuit is filed, the creditor can get a judgment against you from the court. Once a judgment is received, the...

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Does Having Federal Student Loans on Your Credit Hurt It?

Federal student loans can help your credit rating if you make on-time payments, the same as any other installment or revolving loan. However, defaulting or making delinquent payments on federal student loans can negatively impact your credit score for longer than other loans. Under certain circumstances, federal student loans can hurt your credit for life. On-Time Payments Making timely payments on your federal student loans will positively impact your credit rating. The largest single factor that affects a consumer's overall credit rating...

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Government Grants for Debt Consolidation

As of April 2011, there are no state or federal government grants available for consumers who wish to consolidate or eliminate their personal loans, such as credit cards. While it's true that local, state, and federal governments often award considerable sums to organizations and individuals -- often, money that doesn't have to be repaid -- the money must be used for a specific purpose, and applicants must meet certain criteria. The Purpose of...

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Can My Social Security Disability Be Garnished by Medicare?

When a person falls into debt with a creditor, the creditor may choose to take legal action against the debtor. In the creditor files a breach-of-contract suit against the debtor and receives a civil judgment for damages, he has several options in how to attempt to collect the money. If the debtor will not voluntarily pay the money, the creditor---which can be both a private creditor or a government agency, such as the Department of Health and Human Services, which runs Medicare---may attempt to garnish the individual's wages. Garnishment ...

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Pros and Cons of Credit Card Consolidation

Credit card debt consolidation can be very tempting for people feeling overwhelmed by credit card debt. There are several credit card consolidation options to consider, each with their pros and cons. You can consolidate with a home equity loan, also known as a second mortgage, or a home equity line of credit, a revolving credit account in which your home serves as security for the debt. Debt consolidation loans provide one lump sum intended to pay...

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Can Debt Collectors Garnish Your Bank Account if You Have SSDI Income Only?

Once debt collectors have made multiple attempts to contact you about a debt, their next step is often filing a lawsuit against you. If the collectors win the lawsuit and obtain a judgment against you, the court can issue an order for wages to be garnished or bank accounts to be levied or garnished to recoup the amount owed to the creditor. (Frequently, the term "levy" is used when a creditor seizes funds from a bank account, and "garnish" is used when it seizes a debtor's wages withheld by his employer.) Legally, Social Security Disability...

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Credit Card Validation Rules

Most credit-card validation systems are run by a Mod 10 algorithm. This algorithm can be modified to filter various validation rules or requirements. Although there are several rules that can be applied to the validation of credit cards, most companies will choose certain ones based on preference and security needs. Provider Recognition The first two to six digits of a credit card determine who the credit provider is. For example, Master...

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Laws on Debt & Loans

The average American has over $10,000 in personal debt, according to a February 2011 article on the Money Talks News website by Karla Bowsher. The highest levels of debt were found in the Northeast. If you are in debt and it is spiraling out of control, you have doubtless wondered what the laws on debt and loans are. Familiarizing yourself with these laws will give you firm legal ground to stand on in the event that you need to fight. Statute of Limitations Your debt is subject to a statute of limitations. This means that your creditors...

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If You Own a House and Are Paying on It, Can You Claim a Bankruptcy?

Filing for bankruptcy while owning a house and making payments is common. Although bankruptcy is often used to stop foreclosure, some people file for other reasons. They may never have missed a payment on their mortgage, but are months behind on excessive credit card debt and other loans. Filing for bankruptcy allows them to reorganize their finances and end harassment from debt collectors while keeping their homes. Exemptions Bankruptcy exemptions allow you to protect certain assets during bankruptcy, including your home. The University...

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Can You Erase Bad Credit Information?

Credit is one of the most important things in a person's financial life. It can determine whether you can purchase a home, rent an apartment, buy a new car, get a student loan and can even be used as a reason why you are rejected for employment. When bad credit information is on a report, most people want to do everything they can to get rid of it as soon as possible. Personal Information The easiest information to erase is bad and incorrect personal information. This includes your name, date of birth, aliases, addresses and employment....

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Can You Be Sued If You Are Paying on Debt?

Since debt arises as a result of a legally binding contract between a creditor and a debtor, failure by the debtor to pay according to the terms of the agreement would constitute a breach of contract. For most consumer credit transactions such as a credit card agreement or an installment car loan, the terms and conditions of the contract are clearly specified within the agreement including repayment terms and the incidents that will give rise to a default or breach of the contract. Breach of Contract If a debtor were making payments on...

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Is a Wife Responsible for a Husband's Debt in Pennsylvania?

Debt within a marriage can be a divisive subject. If the spouses have different attitudes toward money -- perhaps one's a saver and the other a spender -- this can lead to arguments and sometimes even divorce. It's helpful to be aware of the debts for which you are responsible within a marriage. Common Law State Pennsylvania is a common law state, rather than a community property state. This means that in many instances, each spouse is responsible for his own debt, unless the debt was used to purchase items that benefit the general household....

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Will Credit Card Companies Settle Debt With Someone Who Has Business Assets?

Generally, credit card companies will settle a debt with someone who has business assets -- unless the credit card is a business credit card with the company's assets pledged as collateral. Under that scenario the card company may decide that it has more to gain by seizing some of the business assets than settling the account for less than the full amount owed. No Guarantees Settlement offers are not guaranteed, no matter what the circumstances. The card companies are not required by law to accept a settlement, and a decision to grant a...

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Tips on Credit Card Collections

Seeing that same phone number on your caller ID several times a day or a week, and knowing it's a credit card collection company, can be intimidating. Don't be a victim of the collection attempts. Instead, be prepared to negotiate with the credit card companies. Get your information together and call them back, on your terms, when you are armed with the information you need to negotiate your best agreement. Don't Risk Your Health When negotiating...

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Solutions for Cleaning Up Debt

Debt is the cause of worry and anxiety for a large number of Americans. Like most problems related to finances, it can create tension between couples and make for an unpleasant home life. However, knowledgeable financial advisers have developed easy-to-follow plans to help people clean up and eliminate their debt. Debt Snowball Plan Financial counselor Dave Ramsey dispels the myth that the debt carrying the highest interest rate should be...

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The Georgia Garnishment Statute

If you are a Georgia resident who has fallen behind on credit card, installment loan or other debt payments, your creditor will typically make phone calls and send letters in an attempt to compel you to catch up on your payments. If you do not respond or if you demonstrate unwillingness to bring your account current, Georgia law permits creditors to garnish your earnings and bank account balances. Legal Authorization Title 18, Chapter 4 of the Georgia Annotated Code authorizes garnishment of wages and bank accounts in Georgia. These articles...

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How to Calculate Payoff and Debt Reduction

If you have a debt, the payoff as well as debt reduction can be calculated if you have all of the terms and conditions of the loan. The number of days in the billing cycle or the number of days between payments will help with your calculations. Each day your debt is outstanding, interest will accrue. When you pay off a debt before the loan term, you save money in finance charges. Instructions 1 Gather all of the terms and conditions of your loan. The interest rate and balance will be needed to calculate debt reduction and/or a payoff on...

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How to Reduce or Eliminate Debt

Debt sometimes feels like a merry-go-round, where you move circles without going anywhere. If you charge as much or more than you pay on your debts each month, those debts can ruin your financial future. Resolve to start getting rid of those debts. Change the habits that got you intro trouble and learn how to pay your debts off faster. Then you can watch your debts shrink every month and eventually eliminate them completely. Instructions 1 ...

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What Happens When You Don't Pay Credit Cards in Ohio?

Defaulting on credit card debt in Ohio may result in late fees, higher interest rates, lower credit report scores and lawsuits. Additionally, over-the-limit charges may apply if your credit card is at or near the limit when a late payment fee hits. Reduce penalties by notifying creditors and explaining the situation before you miss a payment. Collections Generally, if you are 30 days late in Ohio or stop paying altogether, the account goes to collections. Debt collectors can call at home or work and contact your friends and family in an...

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Information on Alternative Credit

People who do not have a traditional credit score -- there are 50 million of them, according to the Fair Isaac Corporation -- sometimes wonder how to get a loan if obtaining one requires a credit history. As long as you pay bills each month you can probably acquire the standard lines of credit, such as a mortgage and credit card, but it may prove a little tougher than normal. What is Alternative Credit? An alternative credit score is a risk...

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The Statute of Limitations on Debt Collection in New Jersey

As of March 2010, numbers released by the Federal Reserve indicated that the amount of outstanding consumer debt was approximately $2.5 trillion, which only reflected consumer debt not secured by real property, including $856 billion in credit card debt. At the same time, Fitch Ratings estimated the number of credit card defaults to be at 13 percent. In New Jersey, the statute of limitations determines how far a debt collector can go to compel payment...

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Is it Really Cheaper to Consolidate Debt?

Consolidating debt refers to eliminating a number of smaller debts by replacing them with a larger debt. This type of consolidation offers one primary benefit: simplicity. It can be much easier for a borrower mired in debt to deal with one monthly payment instead of many different payments from various loans and credit cards. However, debt consolidation does not always save money. Savings depend on the terms of the loan. Term vs. Rate Many people believe that if they consolidate debt into a new loan with a lower interest rate, they will...

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Information & Rights for Debtor Accounts

Federal and state laws dictate the rights for collecting and reporting information relating to debtor accounts. Original creditors, debt collection agencies, debt buyers and credit reporting agencies may each play a role in a debtor's account. Original creditors initiated the account, but they have the right to sell delinquent debt to a debt buyer or to turn the debtor account over to a debt collection agency. Credit reporting agencies compile information from all three sources to calculate a debtors' credit rating. Collection Activities ...

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How to Extend Credit to Tier One Customers

Tier one credit borrowers are those who have FICO score above 720. A FICO score is a three-digit number between 300 and 850 that represents a borrower's overall creditworthiness. FICO stands for Fair Isaac Credit Company and was founded by Bill Fair and Earl Isaac. The FICO score is the universally-accepted score for extending credit. Extending credit to top-tier borrowers is relatively easy. Instructions 1 Pull a current copy of the borrower's credit report to confirm top-tier status. See Resources for a free resource for pulling credit...

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Using Credit Vs. Debit

Credit cards and debit cards both have their advantages and disadvantages. To determine which one is best for you, you should consider your spending habits, budgeting goals, level of discipline and financial situation. Neither is likely to emerge as a clear-cut winner, and you may conclude you need to use a combination of the two. Budgeting Some people may prefer the restrictions of debit, because it limits the amount of money you can spend to what you have in your account. However, you may still pay money in overdraft fees, which can...

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How to Make a Reduced Settlement Agreement for Credit Card Debt

Making a reduced settlement agreement for credit card debt can help save you thousands and eliminate your debt quicker. Creditors aren't required to accept your request to forgive your outstanding debt and settle for less. But crafting a convincing and professional letter may work to your advantage, wherein your creditor may negotiate. Instructions 1 Write a settlement letter to start the negotiating process. Creditors accept debt settlement letters via postal mail. Write your name as it appears on the account, date of your request and your...

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How to Build Good Credit After a Poor Credit History

Credit card and loan companies are not the only entities that care whether you have a good credit report. Landlords, insurance companies and even employers commonly use your credit report for the sole purpose of gauging whether you are responsible. Therefore, if you have a poor credit history, it is important to learn the steps to rebuild good credit. Instructions 1 Earn the highest credit score possible. If you are late paying your bills,...

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How to Stop Debt Harassment

According to the Fair Debt Collections Practices Act, creditors are not allowed to harass nor threaten debtors. The law has specific guidelines that creditors and collection agencies must follow when contacting consumers. Congress recognized that although a consumer may owe a debt, collection of that debt must occur within certain established parameters. If a collection agency or creditor violates the FDCPA, consumers have the right to seek redress...

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How to Discharge a Public Debt

A government must borrow money to finance its operations. This money owed is called the public debt. The standard manner in which a government borrows money is by selling securities or government bonds. These are essentially promises of payment within a fixed duration of time and the invested money earns interest. These government bonds could be sold domestically or to foreign investors. A less sustainable way of borrowing money is through direct loans from international financial institutions. Thus, there are two broad categories of public debt:...

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